10 Stocks That Will Go Up 1000 Percent
In this article, we will take a look at the 10 stocks that will go up 1000 percent. To see more such companies, go directly to 5 Stocks That Will Go Up 1000 Percent.
There are only two ways to make money by investing in the stock market. The first is being extremely lucky and getting rich fast via speculative stocks. Of course this way does not bring sustainable gains and often end up wiping all gains overnight. After all speculation cannot stand the market tests and one cannot get lucky every time. The second way to generate wealth via stock investing is to stick to the age-old and tried and tested investing principles. One such principle is buying solid stocks and holding them. In an interesting document entitled IS BUY AND HOLD DEAD? NOT SO FAST, Brock Gearhart and Mary Ann Greenwood from Greenwood & Associates share an interesting chart showing 20 year simple moving average of returns of the stock market from 1950 to 2008. The analysts say that “the long-term investor who can see beyond annual returns stands to benefit from the fact that financial markets, over the long-term, tend to rise.”
When an investor invests in solid businesses that have long-term growth catalysts, with an intention to buy and hold these stocks for decades, enjoying over 1000% gains does not sound speculative or too good to be true. In the Russell 1,000, 33 companies gained over 1,000% since April 2013 through April 2023. Some of these ten-baggers include Nvidia (NVDA), Tesla (TSLA), Plug Power (PLUG), AMD (AMD), Enphase Energy (ENPH) and Broadcom (AVGO).
How to Find Ten-Baggers?
The term ten-bagger was coined by legendary investor Peter Lynch. In his book “One Up On Wall Street” Lynch talks at length about ten-baggers and how to spot them. In a chapter titled “Talking the Tenbagger” Lynch says:
"The best place to begin looking for the tenbagger is close to home—if not in the backyard then down at the shopping mall, and especially wherever you happen to work. With most of the tenbaggers already mentioned— Dunkin’Donuts, The Limited, Subaru, Dreyfus, McDonald’s, Tambrands, and Pep Boys —the first sips of success were apparent at hundreds of locations across the country. The fireman in New England, the customers in central Ohio where Kentucky Fried Chicken first opened up, the mob down at Pic ’N’ Save, all had a chance to say, “This is great; I wonder about the stock,” long before Wall Street got its original clue. The average person comes across a likely prospect two or three times a year—sometimes more. Executives at Pep Boys, clerks at Pep Boys, lawyers and accountants, suppliers of Pep Boys, the firm that did the advertising, sign painters, building contractors for the new stores, and even the people who washed the floors all must have observed Pep Boys’ success. Thousands of potential investors got this “tip,” and that doesn’t even count the hundreds of thousands of customers.”
The Ten-Baggers of Tomorrow
Building on Peter Lynch’s philosophy, Alexander Green, the Chief Investment Strategist of The Oxford Club, in a 2016 note entitled The Ten-Baggers of Tomorrow, identified some common characteristics of ten-bagger stocks. According to Green, ten-baggers are “tremendous innovators.” The analyst gives examples of Tesla and Apple as these companies disrupted their respective industries and set new trends, creating huge gains for investors. Another property of ten-baggers is that they have strong sales growth. Green emphasizes “sales growth” here and says he’s not talking about profits here since many innovative companies do not make profits in the start.
Another important and common characteristic of ten-bagger stocks according to Green is that they are usually small-cap and mid-cap stocks. The reason is simple. Small companies have the potential to post explosive gains and unlike large, mature companies, they haven’t yet reached their true potential.
Green says:
A study by the Chicago research firm Ibbotson Associates reveals that every dollar invested in a basket of large cap stocks in 1926 and held through the end of May of this year – with dividends reinvested – would have grown to more than $5,200. But every dollar invested in a basket of small cap stocks would have grown over the same period to more than $25,100. Huge companies simply can’t grow at the breakneck pace of smaller companies.
Our Methodology
For this article we consulted a variety of credible sources and analysts reports and picked 10 stocks that are most frequently labeled as ten-baggers or as having the potential to gain close to or over 1000% over the next 5-15 years. Some of the notable sources we consulted include Wall Street Zen, Investing.com, Investorplace, bespokepremium.com, Fool.com, USNews, Nasdaq.com, pennystocks.com, among other sources which include YouTube videos and Twitter threads. Some notable names in the list include Nvidia (NVDA), Tesla (TSLA), Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL).
Disclaimer: The stocks discussed in the article were selected using a consensus opinion-based approach, using credible analyst reports, websites and price estimates. However, there is no guarantee that these stocks will appreciate in value in future. The purpose of this article is news and education based on research.
Stocks That Will Go Up 1000 Percent
10. Mind Medicine (MindMed) Inc. (NASDAQ:MNMD)
Number of Hedge Fund Holders: 4
Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) is a psychedelic medicine biotech company. Currently a penny stock, Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) can grow in the future given the world’s increasing focus on the health and mental benefits of psychedelics. According to TipRanks the average analyst price estimate for Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) is $26 (median) and $74 (high). These price targets show huge potential gains.
President Joe Biden’s brother Frank Biden recently said during an interview that President Joe Biden is very "open-minded about" psychedelic medications.
9. Applied Therapeutics, Inc. (NASDAQ:APLT)
Number of Hedge Fund Holders: 8
Applied Therapeutics, Inc. (NASDAQ:APLT) is a clinical-stage biotech company that has a lot of upside potential according to Wall Street analysts. The European Medicines Agency (EMA) in May granted orphan medicinal product designation to Applied Therapeutics, Inc. (NASDAQ:APLT)'s drug AT-007 (govorestat) to treat Sorbitol Dehydrogenase (SORD) Deficiency.
Applied Therapeutics, Inc. (NASDAQ:APLT)’s average analyst price estimate on the high end is $14, which shows an upside potential of 1300%. A total of 8 hedge funds tracked by Insider Monkey had stakes in Applied Therapeutics, Inc. (NASDAQ:APLT). The biggest hedge fund stakeholder of Applied Therapeutics, Inc. (NASDAQ:APLT) during this period was Fred Knoll’s Knoll Capital Management which owns a $2.8 million stake in the company.
8. Virgin Galactic Holdings, Inc. (NYSE:SPCE)
Number of Hedge Fund Holders: 12
Virgin Galactic Holdings, Inc. (NYSE:SPCE) is a high risk high reward stock that has the potential to gain a lot of value since it’s operating in the space industry where barriers to entry are high and the potential of returns is huge. Virgin Galactic Holdings, Inc. (NYSE:SPCE) recently kicked off the space tourism era with its first commercial flight with humans on board. Virgin Galactic Holdings, Inc. (NYSE:SPCE) plans to launch another flight in August and then begin monthly flights with paying customers. Media reports suggest that the company has a backlog of 800 customers, many of whom bought tickets priced at $200,000 to $250,000 per piece. Virgin Galactic Holdings, Inc. (NYSE:SPCE) has now increased its ticket price to $450,000 per seat.
7. Atara Biotherapeutics Inc. (NASDAQ:ATRA)
Number of Hedge Fund Holders: 14
Atara Biotherapeutics Inc. (NASDAQ:ATRA) is operating in the multiple sclerosis market, whose size is expected to reach about $34 billion by 2031. Atara Biotherapeutics Inc. (NASDAQ:ATRA) is expected to release the results of its phase 2 EMBOLD study in October 2023.
Canaccord Genuity’s John Newman has a $20.98 price target on Atara Biotherapeutics Inc. (NASDAQ:ATRA), which shows over 1000% upside potential from the current levels.
As of the end of the first quarter of 2023, 14 hedge funds tracked by Insider Monkey had stakes in Atara Biotherapeutics Inc. (NASDAQ:ATRA). The biggest hedge fund stakeholder of Atara Biotherapeutics Inc. (NASDAQ:ATRA) during this period was Lee Ainslie’s Maverick Capital which owns an $18.24 million stake in the company.
6. Malibu Boats Inc. (NASDAQ:MBUU)
Number of Hedge Fund Holders: 15
The website Wall Street Zen has a ten-bagger stock screener which applies several conditions based on earnings growth, industry PE vs company PE, among other factors, to find stocks with 10X potential. Malibu Boats Inc. (NASDAQ:MBUU) tops the list of stocks identified by this screen with the highest “Zen Score.”
In May, Malibu Boats Inc. (NASDAQ:MBUU) posted fiscal Q3 results.
Adjusted EPS of the company in the period came in at $2.59, beating estimates by $0.25. Revenue in the period jumped 8.9% year over year to $375.1 million, beating estimates by $31.92 million.
As of the end of the first quarter of 2023, 15 hedge funds in Insider Monkey’s database had stakes in Malibu Boats Inc. (NASDAQ:MBUU). The biggest stakeholder of Malibu Boats Inc. (NASDAQ:MBUU) was Doug Gordon, Jon Hilsabeck And Don Jabro’s Shellback Capital which owns an $11.2 million stake in the company.
Here is what Polen Capital specifically said about Malibu Boats, Inc. (NASDAQ:MBUU) in its Q2 2022 investor letter:
“On Malibu Boats, Inc. (NASDAQ:MBUU) we are concerned about the considerable demand pull-forward during the pandemic combined with the rise in interest rates and inflationary pressures the consumer is currently facing. The business continues to perform well but we know from past downturns that this is an industry that is more vulnerable to these types of pressures, and that the environment can change quickly. The company’s stock has held up better than most companies in our Portfolio in the YTD period, making it a good source of funds to redeploy into companies with less vulnerability to the changing economic conditions and more compelling risk reward profiles.”
Some notable names analysts believe could gain 1000% or more in value also include Nvidia (NVDA), Tesla (TSLA), Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL). We will discuss these stocks in the next part.
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Disclosure: None. 10 Stocks That Will Go Up 1000 Percent is originally published on Insider Monkey.